What does the 'Development Period' refer to in the context of an Ella Cafe Development Agreement?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
"Development Agreement" means the form of agreement prescribed by Franchisor and used to grant to its developers the right to develop one or more Coffee Houses in a certain geographical area, including all attachments, exhibits, riders, guarantees, or other related documents, all as amended from time to time.
"Development Period" means each of the time periods indicated in the Key Terms during which Developer has the right and obligation to develop Coffee House.
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the Development Period refers to the time periods indicated in the Key Terms during which a developer has the right and obligation to develop an Ella Cafe location. The Development Agreement grants developers the right to develop one or more Ella Cafe locations in a specific geographical area. The term of the Development Agreement begins on the effective date and expires either when the developer completes their development obligations or at 12:00 midnight Central Time on the last day of the last Development Period identified in the Key Terms, unless otherwise negotiated, terminated, or extended.
During the Development Period, the developer must adhere to the Development Schedule. Failure to do so, including any extensions approved by Ella Cafe in writing, or to meet the time period for developing replacement Coffee Houses, constitutes a material breach of the Development Agreement. In such cases, Ella Cafe may terminate or modify any territorial protections granted, reduce the size of the Development Area, or reduce the number of Coffee Houses the developer may establish under the Development Schedule.
Upon termination or expiration of the Development Agreement, the developer loses the right to develop any further Ella Cafe locations for which a Franchise Agreement has not been signed. However, the termination or expiration does not affect any rights or obligations under any existing Franchise Agreements. This means that any Ella Cafe locations already operating under a signed Franchise Agreement can continue to operate even after the Development Agreement ends.